EBay Inc (NASDAQ:EBAY), one of the world’s largest online retailers, is on the verge of launching an advertising network in its fast growing mobile app. This will move the company a notch higher in the advertisement business.
The company will take advantage of its app’s more than 4.6 million daily users and the growing use of mobile devices such as smartphones and tablets. Mobile advertisement has been on the rise in the recent past and it’s high time eBay Inc (NASDAQ:EBAY) joined the bandwagon to tap into the lucrative market.
“Now, for the first time, we’re giving you the opportunity to connect with eBay users throughout their entire shopping journey,”
reads a new page on the company’s website.
Since the app requires a log-in, eBay Inc (NASDAQ:EBAY) gets all the details of their app users and their activities. This provides a great avenue for the company to segment its users, which in extension makes it easier for potential advertisers to identify the segments to target with their ads.
eBay Inc (NASDAQ:EBAY) is partnering with Triad Retail Media on the project. Details revealed that the two companies will be sharing revenues generated from such advertisements, though eBay will be running away with the lion share.
There is however a brewing concern among market analysts that the move might make some users bolt out and join some other retail platforms. This possibility is nevertheless downplayed since many other online retail firms are also introducing mobile app advertisements as a new source of revenue.
Yahoo! Finance reported that eBay has already pocketed a few advertisers awaiting the launch. Berkshire Hathaway’s Geico insurance unit is said to be one of the companies.
With reports by eMarketer indicating that mobile advertising will grow twofold this year, it’s believed that eBay is making an entry at an opportune time.
This article has been written by Victor Ochieng.